(Alliance News) - FTSE 250-listed Balfour Beatty PLC and Galliford Try PLC on Monday said the Aberdeen Western Peripheral Route joint venture has agreed settlement terms with the client in respect of the final account of the major infrastructure project.
This will result in construction firm Balfour Beatty receiving around GBP32 million as part of the settlement, with no material change to its balance sheet position.
Balfour Beatty said it continues to expect profit from operations for 2019 to be in line with forecasts.
Meanwhile, London-based house-building company Galliford Try said it expects to receive a cash payment of around GBP32 million and incur a write-off of GBP52 million. Taken together with an adverse adjudication award on an unrelated historical contract in the period, the Galliford Try said it will report an exceptional write-off of GBP61 million in 2019.
"The settlement brings to a conclusion a complex and challenging project, averting a lengthy and costly litigation process. The settlement also removes a significant distraction and uncertainty, allowing the construction business to focus on its core business, current and new projects which are expected to deliver improving margins, operating on multiple secured frameworks and in our chosen sectors," Galliford Try explained in a statement Monday.
Balfour Beatty shares were trading 1.4% higher in London on Monday at 266.68 pence each, while Galliford Try stock was up 1.9% at 855.50p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Balfour Beatty (BBY)
Galliford Try (GFRD)